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Exact analysis of a two‐echelon inventory system for recoverable items under batch inspection policy

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  • Kripa Shanker

Abstract

We investigate a two‐echelon (base‐depot) inventory system of recoverable (repairable) items. The arrivals of demand at the bases are in a Poisson manner and the order sizes are random. The failed units can be repaired either at the base or at the depot, and the units beyond economic repair are condemned. Inspection of the failed units is carried out in the batches they arrive, that is, arrival batches are not broken up. The exact expressions for stationary distribution of depot inventory position, and of the number of backorders, onhand inventory, in‐repair inventory at all locations are derived under the assumptions of constant repair and lead times. Special cases of complete recoverability, nonrecoverability, and of the unit order size are also discussed.

Suggested Citation

  • Kripa Shanker, 1981. "Exact analysis of a two‐echelon inventory system for recoverable items under batch inspection policy," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 28(4), pages 579-601, December.
    • Handle: RePEc:wly:navlog:v:28:y:1981:i:4:p:579-601
    DOI: 10.1002/nav.3800280407
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    Cited by:

    1. Carl R. Schultz, 1990. "On the optimality of the (S — 1,S) policy," Naval Research Logistics (NRL), John Wiley & Sons, vol. 37(5), pages 715-723, October.
    2. Paul Zipkin, 1991. "Evaluation of base‐stock policies in multiechelon inventory systems with compound‐poisson demands," Naval Research Logistics (NRL), John Wiley & Sons, vol. 38(3), pages 397-412, June.
    3. Huaxiao Shen & Tian Tian & Han Zhu, 2019. "A Two-Echelon Inventory System with a Minimum Order Quantity Requirement," Sustainability, MDPI, vol. 11(18), pages 1-22, September.

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